Targa Resources Corp
TRGP: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$137.00 | Fqc | Hbhvrzpv |
Targa: Fee Floors Support Substantial Fair Value Estimate Increase to $99
After updating our model to reflect the existence of strong fee floors within Targa's gathering and processing business, or G&P, plus the demand-pull nature of Targa's pipes (Grand Prix and soon Daytona) serving as a ready demand source for G&P volumes, we're raising our fair value estimate to $99 from $79. Our EBITDA multiple for 2024 is about 9.2 times, in line with peers, versus a discount.